Ryanair Holdings plc (NASDAQ:RYAAY) shared that it anticipates no jet fuel supply shortages despite the challenges presented by the ongoing Iran war.
No Fuel Snags
On Monday, the budget airline shared that supply chain uncertainty was receding as alternative sources to GCC oil producers, according to a Reuters report.
The report also said that the airline anticipates fare prices to fall, with prices from the months of April to June falling by mid-single-digit percentages. Ryanair expects July to September fares to be “broadly flat.” However, Ryanair cautioned that unit costs could still surge if jet fuel costs remain at current levels.
According to data by the International Air Transport Association (IATA), the average jet fuel cost globally for the week that ended on May 8 was $162.89/bbl. Meanwhile, data from Airlines for America on Friday showed that the average jet fuel price in the U.S. was $3.90/gallon.
Ryanair Earnings
The airline reported an after-tax profit of 2.26 billion euros ($2.63 billion), while also reporting a loss of 86 cents per share, which beat market expectations of a quarterly loss of 95 cents per share. Ryanair suspended profit guidance for the fiscal year 2027 amid a volatile environment.
Iran War And Travel
European countries have been grappling with shortages of jet fuel amid uncertainty over the Strait of Hormuz, with Deutsche Lufthansa (OTC:DLAKY), which is the largest flight operator in the European region, reportedly planning on retiring some aircraft early.
Meanwhile, during April, Chevron (NYSE:CVX) CEO Mike Wirth had issued a warning, saying that air travel costs could surge and flight availability may dwindle amid the ongoing war. Kevin Hassett, who is President Donald Trump‘s Director of the White House National Economic Council, had also said that the Iran war could put pressure on airlines’ profits.
Budget airline Spirit Aviation Holdings, Inc. (OTC:FLYYQ) faced rising fuel costs, among other issues, which led to the airline ceasing operations as creditors refused to support a government-backed $500 million rescue plan, with lawmakers like Sen. Elizabeth Warren (D-Mass) sharing that spiking fuel costs from the Iran war were the “final nail in the coffin” for the airline.
Benzinga Edge Rankings show that Ryanair scores well on the Value metric, but fails to offer a favorable price trend in the Long Term.
Price Action: Ryanair Holdings shares were down 5.30% at $52.28 during premarket trading on Monday.
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Photo courtesy: Markus Mainka via Shutterstock
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